kernen and andrew ross sorkin. we have a lot to talk about, including all of the political headlines out of charlotte. first lady michelle obama speaking to the party faithful last night. bill clinton is tonight's headliner. we'll go to north carolina and check in with john harwood in a moment. first, nfl kickoff, the giants and cowboys play tonight but the real game is on "squawk" this morning. we'll talk big business of the pigskin with the top nfl executive, mark wal erwaller at eastern time. and exclusive interview with indra nooyi from pepsico. and we'll talk to the owner of the new york jets, woody johnson at 7:15 eastern. and we have the owners of the cowboys and the giants, they will be live together at :15 eastern time. jerry jones and steve tisch in a "squawk box" exclusive. let's start with the top

headlines, andrew. let's talk facebook. it's promising not to sell stock to cover a $2 billion tax bill. it says it will cover that with existing cash and borrowing from credit facilities. as a result of the move, total outstanding shares will be reduced by 1.5 million shares. the company spinning it as a equivalent of buy back. the company disclosing rank and file employees can start selling stock they own starting on october 29th. that is the big day. and then a couple of other dates that will come after that. ceo mark zuckerberg, as joe was saying earlier, saying he won't be selling stock in the company for at least the next 12 months. you probably -- >> i would hope it goes up. >> you can only hope at this point. >> by the way, one other comment. i thought when the ipo first happened that he had said or people close to facebook were saying that he wasn't planning on ever selling his shares anyway, so -- >> doesn't want to dilute the stake. >> it is what it is. >> you mentioned yesterday, you

said $10, some people were talking about. >> could fall to $10. we had an analyst on from citi, he said low teens before he would get in. they have lost more than 50% of its market value since going public in may. that's $50 billion. shares did rise in after-hours trading, up a little over 2%. we'll see how that works out today. nokia and microsoft will be showcasing a new smartphone in new york. the phones will run on the latest windows software. analysts say it could be nokia's last shot at winning back mark share to apple, samsung. >> what's the name? >> the lumina? >> is it lumina? >> i thought it was lumia. >> there's no "n". >> you believe it's lumia? >> i'm just reading the same thing you just read, but to me, i wouldn't -- unless you -- if you know there's an "n," there's an "n."

you're not feeling well so this -- >> it's the lumia. >> she has tea. why don't -- >> i do. >> would you like some tea? >> you should drink tea. >> the question today is, honestly, a, is it just being tired from your 1% african vacation? b, did you bring back something that's truly hideous we could both catch? c, were you cheering so loud during michelle obama's speech last night that you're hoarse today? >> it could be a combination of all three things. it's sort of -- >> i show people what happened to me. >> i saw your finger. >> i shook his hand yesterday. i've never been to africa and i have no idea -- >> it's heart to find -- all right. >> but what is that? >> it looks like a blood blister, my friend. >> i don't know. i shook your handy. i worried about shaking it coming back from africa. >> stop it. >> i got my finger caught in an umbrella. that might have haptd. but i thought -- if a tape worm pops out of this --

>> would you stop! people are eating breakfast. >> all right. let's just -- >> thank you, andrew. >> let's finish up on headlines, if we could. meantime, amazon will be unwrapping new kindle fire tablets tomorrow and apple is expected to unveil the latest version of its iphone on september 12th. don't miss nokia ceo on "squawk on the street" at 11:45 eastern. >> stephen elop. >> joe? >> you should never admit weakness, especially first thing. >> i do have a sore throat this morning. >> i know. >> but i will -- >> people seize on that. >> no. you seize on that. >> we do have tea upstairs. would you like some? >> i'll get some. >> it's peppermint. >> lovely. >> i feel bad. corporate news, fedex is slashing outlook. this is amazing if you read "the journal" today. noting they're blaming a weak global economy but it's really,

ak according to "the journal," due to manufacturing in china. i watched steven roach having a big argument with "fast money" dudes. the guys from short hills said he likes dick's sporting goods, that guy. these guys are negative on china. steven roach was still with, okay, it's slowing down to 7.6%. it's not going to drop off a cliff. these guys were very negative. as you look at shanghai index, it's really come down a lot. >> down again today. >> you wouldn't think fedex, manufacturing in china, but that's the ripples of slowdown. seeing $1.37 to $1.33 a share and previous guidance was $1.60. fedex doesn't typically give a lot of guidance unless it's sure. in the past they have told us, we're not lowering our guidance. we may be below the street. but this time i believe they had

previous guidance and this is low. u.p.s. lowered its 2012 forecast also back in july. and fedex shares, as you can see, were down -- they closed about 87. you can see trading down at 84 and change this morning. that could affect the transportation average in a market that -- we're going to see whether we can stick above 1300 and 1400 on s&p. we saw jeff weise yesterday -- >> the dow and s&p down at some point but they came back, still ended down a little bit. if you take a look at futures today you'll see they're slightly higher. yesterday we saw a selloff for both the dow and the s&p 500. the dow was down by 54 points. s&p was down by 1.6. as joe mentioned, dow stayed above 13,000. s&p stayed above at 1404. these are key levels we dp see them testing all day long. nasdaq actually ended the day higher. it was up eight points. a little mixed start to what has

traditionally been the worst month for the markets. we'll see how the rest of this fares. >> you popped -- >> no. if you popped it yesterday, that's one thing but now it's solidified. just leave it. it has to heal. it's going to take forever. it's going to be ugly for a while. >> it's ugly and in the way. both we're both playing hurt. >> playing hurt. and a big football day for zeus did you see the food we? >> we're playing hurt look at this. check this out. this is breakfast right here. >> you know what, the only unfortunate thing -- i have a very small trunk. >> very small what? >> trunk in the front of my car. i was just going to load that right in there. and you -- of course, your limo has a large trunk. you don't have a car, but -- >> pop that in the back of the escalade.

>> is it an escalade? you are rolling with an escalade, aren't you, like an entourage black escalade, moving with the bass, every time the bass goes off -- >> we turn on the "squawk" music. >> you know what? >> what? >> don't you see a lot of these other things we talk about, qe3 -- >> oil prices? >> i'm just feeling qe3. >> you feel it's already here, already -- >> gold -- >> gold touched above 1700 for the first time since march. >> people are running away from spain. the euro's at 126. how does that work if it's not qe3, tell me? >> it is qe3. >> it happened after the weekend, after bernanke's speech. >> i'm going to talk politics. i'm splendid in blue. >> i can see. >> you're purple. let's see if harwood is hoarse. democrats gathering in

charlotte, they'll hear from former president bill clinton, the only person more popular spoke last night, michelle obama, spoke to the dnc. chief washington correspondent john harwood joins us from north carolina. i hope you saved some cheers for clinton tonight, john. you got anything left? andrew's hoarse. >> >> reporter: andrew's hoarse? >> he says he's hoarse. i think he was up cheering. is it early for you today, john? i'll draw you a little picture. is it early? are you all right? >> reporter: no, it's not too early. but it's too early for this foolishness you're talking about right now. >> right. you got serious stuff to sell. go ahead. >> reporter: look, we have book end messages. bill clinton tonight is going to lay out an economic case that democrats hope is broadly appealing, especially helps limit republican advantage, which is wide among wide voters.

last night you had julian castro, mayor of san antonio, and michelle obama deliver a message about values and opportunity targeted at the democratic constituency groups that are the strongest parts of their coalition. that is hispanics, african-americans and women. michelle obama especially tried to provide a powerful testimonial to his values, she talked about his vision of opportunity to the country and she made a point which was an indirect hit on mitt romney and the values that they believe are expressed by the republican ticket when she said her husband cares most about trying to figure out not how much money you make but how much you help others. here's her message last night. >> he's the same man who started his career by turning down high-paying jobs and instead working in struggling neighborhoods, where a steel plant had shut down, fighting to rebuild those communities and

get folks back to work. because for barack, success isn't about how much money you make. it's about the difference you make in people's lives. >> reporter: and what was interesting about that speech, joe, was just like ann romney, it was not filled with attacks. ann romney, like michelle obama, are popular figure. that's why their husbands give them prime time addresses during these conventions. julian castro said mitt romney isn't a bad guy. he just doesn't understand how good he's had it. michelle obama was trying to talk about the same story talking about struggles of heifer family, struggles of

barack obama, hoping that connects with the vast majority of people out there who are not economically successful and that's where democrats see their majority coming from. >> john, i was watching some of the coverage last night. there was a lot of talk about

the idea that the jerusalem plank has been taken out of the democratic platform at this point. how important is that? >> reporter: i don't think terribly important. i don't think that's going to be a focus of -- a focus of the campaign. >> what did -- they took out god or something like that? i saw that on the conservative website. what did they do? it said in god -- did you see that? there's some language removed. >> reporter: i did not see that. i also think that is unimportant. but, you know, look, both -- bases on both sides, ideological fervent people on both sides look at the platform. about the only people who look at the platforms and look for we need a government that stands up for hopes, values of working people and gives everyone willing to work the chance to make the most of their

about the tact to get behind it at a time when it doesn't poll well. >> reporter: it doesn't poll well for some people but for a lot of people who get medicaid coverage under that -- something like 30 million people, added to medicaid rolls, that's the flipside of republicans are concerned that obama care's not affordable and that it expands the role of government. the flipside of that is, there's a lot of people who don't have health care who get it because of obama care and the president -- those are the president's constituencies. the speakers were talking to them. >> okay. john, thanks for that. we'll look forward to the rest of the day. >> definitely -- >> 7 a.m., right? >> cranky. >> he's up a little too early. >> it's a hard job. >> he's had two conventions back to back.

that's two long weeks and that's a lot of putting up with us. i'm sorry. >> i'm not sorry. you might be. >> i am. >> let's go across the pond and time for the global markets report and our own kelly evans is standing by in london. >> you've been up for hours. what's going on? >> andrew, the land much the paralympics this week. john harwood, one of the hardst works guys in television. he was up with us over an hour ago talking from charlotte. in any case, the man is tireless. stoxx europe 600, is up but a bit of a roller coaster. early weakness spurred by weakness from the pmi zone. pointing to further contraction in the economy in the third quarter after weaknesses in the service sector, especially germany, the fastest contraction. what turned it around? headlines that jean-claude juncker, some call him mr. euro, will be at the ecb tomorrow.

you're seeing a better tone to markets. i'm not saying it's all down to that but we've seen the mood shift. the ibex 35 is up.0%. the same with the cac, xetra dax, and ftse lower could be due to bp. one space to watch, speaking of germany, they just had a technically undersubscribed -- or unsubscribed auction where the bid to cover ratio of just over one because they were trying to auction off ten-year debt at 1.5%. people did take it. they took it at 1.42%. nevertheless, we're seeing pressure there. the ten-year moving higher to 1.4% in the wake of that. a quick look at what's happening across the currency space. the aussie/dollar down significantly this morning. now only 0.3% after gdp figures failed to impress. meantime, come back here, the euro/dollar, this is weaker this morning, down by 0.1%, 1.2547 is

the level to watch president weakness tells you markets still can't quite get a clear sense of what the mood is as we hand off to the u.s. this morning. i know futures there still under a little pressure. i expect a lot more speculation over what the presence of jun juncker at the ecb meeting tomorrow will have. >> we'll check back in. that's a huge day. in the meantime, when we come back, u.s. car and truck sales rising to highest levels. we'll ask the ceo of the nation's largest auto dealer what this tells us about the state of the economy. first, "squawk" sports news. yankees run of 84 straight days -- >> oh, my god. >> -- sole possession of first place and the a.l. east is over. tampa bay beating new york dropping yanks into a tie with baltimore because they just have three games with baltimore. they won on sunday and --

>> they're losing -- i mean, they've been gagging. >> that will make it a very tight finish.

welcome back. alex wallace joins us from the weather channel. we're seeing a lot of rain. we're still seeing remnantings of the last storm? >> you know what, isaac is still with us, the little left of it, impacting the northeast as well as gulf coast. what's behind me is a separate entity, a association with a cold front moving through the western part of the great lakes. that will be heading for chicagoland. could make the morning rush a

little slower. what we've got going on across the northeast, wet across the northeast, part of this is what is left of isaac. again, we're still talking about this thing weeks later. a little further off to the south, showers and storms possible across the carolinas across the first frontal boundary impacting us across the 95 corridor. the great lakes, that system brings us rain this morning. that could potentially bring us stronger storms as we progress through the day as it heads to the east. damaging winds and hail will be the main risk shaded in the red. the good news is, once this system moves by, for those who like the fall-like conditions will get it. cooler air begins to move through the northern tier. we'll be talking about 77 for your high today in minneapolis after a high yesterday in the 90s. guys, back to you. >> thanks. let's get to auto sales which increased 20% in august from a year earlier driven by demand for big pickups.

mike jackson, auto nation, joining us with the company's latest sales. first on cnbc. a little delay, i think, mike, since you're over in germany. i guess maybe checking out some of the really great cars coming out of that country. you were able to beat even 20%, were you not? >> yes, joe, good morning. we had an excellent august retailing 20,000 new units, increase of 28%. if you adjust it for daily saling it's 23% increase. of course, it was led by the recovery of the japanese with our japanese business up 40%. honda leading the way up 40% and honda up 50% also. across the board performance. our domestic business was also up 20%. premium luxury business was up 6%. if i look at geographic performance, well, texas is booming, as you know, fracing

like crazy in texas. the business there was up 35%. but we also see improvement in the housing states of california and florida with california up 30%, florida up 20%. becky, as you and i have discussed in the past, we see signs of steady improvement in florida and california and i i think over the next year or two housing is going to make a comeback and really help those states. >> fraking like crazy, we need to get that in the dictionary to make sure everybody knows exactly what -- >> i'm sure webster has it. >> all right. you're in germany. amg, technology of advanced unit of daimler or mercedes or what are you doing over there, looking senate. >> first, joe, as you know, i started in this business 40 years ago as a technician on

mercedes benz so i've been involved with german cars for over 40 years. when i came to autonation i wanted to increase our portfolio of german vehicles and today 33% of our profits come from german-produced vehicles. they have the most amazing designers in the world. i'm here at amg, which builds racing cars former s mercedes b. they are the top of the end performance vehicles from mercedes benz and truly extraordinary vehicles. >> and, mike, i have a question for you. it will take me a second to get it out. you're a little bit of an enigma because you're a free market guy, i know that, but a big proponent of the auto bailout

that obama administration orchestrated. autonation, 40% stock now, what a job, you and wayne, i mean, you built this company from the ground up. makes me wonder, if -- i would think almost that autonation could almost agree with that the government did help build the company. am i wrong saying that? more than any other companies, the government -- i knew i was going to get you. but the government assistance in the case of autonation really did help these results, right? do you want to push back on me for saying that? do you want to slap me? >> i know our founder would punch you right in the nose, there would be no doubt about that. joe, listen, you know i'm a free market guy. and i think the circumstances after september of '08 with the bankruptcy of lehman brothers, we were staring into the abyss of -- and the end of capitalism

and free enterprise as we knew it. it was one of those circumstances where you had to hold your nose on your principles and do what you needed to do to live and fight another day. by the way, i point out that the heavy lifting was done by president bush in getting t.a.r.p. done. and he was the one who approved the funds that got the auto industry past the first of the year otherwise it would have liquidated at the end of '08. and, by the way, i think the obama administration did the right thing in forming an auto task force and addressing a lot of the standing issues that revolved around general motors and chrysler that had to be taken care of. and i think why you can argue with om some of the things they did, i think in principle they did the right thing. but wayne and i would say we built this company. but god bless america. i wouldn't want to do business in any other country in the world as much as america.

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♪ good morning. welcome back to "squawk box" on cnbc. i'm joe kernen along with becky quick and andrew ross sorkin. exciting music. i expect the saint to walk in here. >> we can do that. >> also james bond.

>> bob's here, right? >> bob's here. >> he could be our saint. nfl kickoff day. giants and cowboys are going to play tonight. the real game is right here on "squawk." this morning we'll talk to big business of the pigskin with top nfl exec mark waller at 6:40 eastern and an in studio conversation with the ceo of top football sponsor, which is pepsi, indra nooyi. a relatively rare appearance. we love to speak with her. at 7:40 eastern. >> the set is ready for her. >> so many salty snacks. i've checked, none of those are illustra-based so we don't have to worry about -- no leakage. if that isn't enough to get the season started we'll get to the owner of the new york jets, woody johnson. you're my onlially on ty al lly.

the owners of the cowboys will be alive together at 8:15 eastern, jerry jones and steve tisch in a "squawk box" exclusive. a busy morning ahead. let's get up to speed on the headlines. first, top headlines, only the top headlines -- >> only the top. switzerland ranking at world's most competitive economy for the fourth year running. the world economic forum ranking 144 countries by examining 113 indicators from official data sources and polling 15,000 executives. united states continued a four-year slide to the seventh spot. separately, a judge ruling amr can abandon its pilot's union contract. saying the bankrupt parent of american airlines corrected certain issues that caused him to reject the same request in the past. amr is trying to save more than $1 billion a year in labor costs. it can unilaterally impose work terms on its pilot, all is happening as talks between amr

and u.s. air continue. in the meantime, a very complicated story. we've been trying to follow the twists and turns. the fbi now says there is no evidence to support claims that hacking group anonymous infiltrated an fbi agent's laptop and lifted data for more than 12 million apple products. however the front page of "the financial times" lays it out and says hackers embarrass apple with this data release. there were over a million different devices, numbers were published online. this is a story that has many odd twists. the hackers said they would not give any interviews about this breach until a gawker posed with a ballet tutu with a shoe on his head for at least 24 hours. so the journalist did just that. he said that he would do anything for his craft. here is a picture of him posing in a tutu with a shoe on his head. anonymous went after this particular reporter because they've had some run-ins with him in the past.

they haven't liked some of his reporting. he says, here it is. it's still posted on the front page of gawker. >> this is the best publicity gawker could possibly have today. >> really? >> i mean, right, a reporter with a tutu and a shoe on his head? >> what's more frighten is what's actually at risk here. did the fbi have these million devices with all these apple users' information on his laptop? again, the fbi is saying -- >> there seems to be a lot of questions about whether that's happening. >> but they have a lot of dwis. they've published it and some people have been able to find their own number on it. >> joe, would you wear a tutu if you had been called out? >> i don't understand the whole story. i've never -- are you fantasizing about me in a tutu? i mean, why would you think of me that way? i'm getting even more -- what

did you do in africa? you come back sick. i mean, and now you want me in a tutu. this squawkard moment has been brought to you by andrew ross sorkin. >> no, you're lusting for me in a tutu but it's not in your hearts. >> let's get to the futures pit. >> jimmy carter was on yesterday. >> i saw that. i heard -- like scatter. it was like -- the place was full. but they're all like, is this good? is this bad? do we really want --

>> i was watching some democratic pundits even saying, well, i know you all don't like him but we still have a lot of respect for everything that happened. there was definitely some internal questions about whether to do that. >> oh, god, what do we do? it was either john edwards or jimmy carter. it's great to see you this morning, or j.j., i should say. >> i'm trying to lose that mental image of joe in a tutu. thanks. i know, i know. although i look pretty good in a tutu, don't get me wrong. >> i'm sure you do, joe. >> i guess we'll have to see. we've been talking about this ecb meeting tomorrow, what it could mean for the markets. we also have the jobs picture coming up on friday. what's the most important thing you're watching? >> i think the jobs is always going to be the most important. because it really shows internally how our economy is doing. with the ecb of course it has a major effect. really, i think the biggest thing that's going on right now is we continue to see conflicting numbers of everything that's going on in the economy.

on the ecb for tomorrow night. but the european zone, as we know, has been in trouble. it's left the front page for a little while but the story certainly hasn't gone away. any time you have the unemployment numbers, i think it's going to overshadow pretty much everything that happens that week, barring, say, a fed meeting. all eyes have to be on that. i think going into the election it certainly matters perhaps more than it it would normally. >> we'll be watching those jobs numbers. although expectations have come down a little bit. about 125,000. that's a lot less than what we'd seen last month of over 160,000. thank you. we'll talk to you again soon. >> always a pleasure. >> that's 125,000 now? >> 125, yeah. comment, questions about anything you see on "squawk," e-mail us at squawkb

squawkbox @cnbc.com. >> i see you can follow at my hair? >> @joekernens hair. >> your brain? >> leisman's brain. >> someone suggested sorkin's sweater. >> that's an idea. did you wear a sweater in africa? >> i did not. >> it wasn't chilly. >> i did one day not with a zip. coming up, america's game and the season kicks off tonight. mark wall ler tell us how he's turning the nation's love for football into profits.

the nfl is a power house for advertisers. joining us is mark waller, nfl's chief marketing officer. thank you for being here. i had a quick question because i was looking over to the pepsi stuff behind you. i was thinking about bud light, which is one of your other big sponsors. does every sponsor pay the exact same amount of money or are there different tiers per sponsor? >> it's different tiers per sponsor. depending on the assets they're interested in and -- >> who is the highest paying sponsor right now? >> that would be a very indiscreet -- >> indiscreet question or increate question? >> indiscreet answer. budweiser, pepsi are both very big partners of ours and then we

go down to sort of smaller sponsors with much tighter assets. >> let's talk about the kickoff. it's happening in new york. you've really created a whole brand just around the kickoff unto itself. >> we have. we've tried very hard. particularly this year in new york to break through in new york and so we've tried to set up sort of ten days of activities. we did our first ever fantasy draft week about a week ago. we actually had the commissioner up in the fantasy draft, which is an interesting concept. last week on thursday we did our first run in central park, a four-mile fun run. and obviously today we have a concert in rock plaza and then the game. >> do you have to keep generating these new products, if you will, to sell to new sponsors, or is it a function of just getting a higher rate overall for the sponsor? how do you think about that? >> we tend to come at it from a fan perspective. the beauty of our sport, the passion of the fans is unbelievable. we try to constantly look at new ways to engage them. last night as an example we did

a nike photo day shoot, particularly for the fashion community. we're looking for ways to take our product and engage it with different communities. >> i was just thinking of the interest in the olympics this year. and if there's anything else that's similar to that, that's just going to keep going to new heights, especially with the giants winning last year, i just see football never -- i don't see it ever sort of leveling off. it's just going to get bigger and bigger and more money and more advertising, which is good. i like it. >> it's a great product. and it is growing and it's growing well. >> i mean tonight -- >> huge game tonight. really exciting. what a great way to start. >> both iconic teams. >> who do you think you compete with? >> ourselves. >> do you feel like you compete with the olympic committee when it comes to finding new sponsors? >> from a sponsor or fan perspective? >> sponsor perspective. you're in the sponsor perspecti perspective, and then the fan

business, but maybe you think of them as the same thing. >> everything feeds from the fan. definitely from a sponsor perspective we compete with all sporting properties, entertainment properties. from a fan perspective, we compete with everyone's free time and everyone's passion. we compete with a lot of people but i think we start competing with ourselves. we constantly try to raise the bar from what we did the year before. >> will the kickoff always happen in new york? >> no. we do it in the team that won the super bowl the year before. whoever is the incumbent holder of the super bowl trophy -- >> i guess it's happened in new york as many times as -- >> twice in four years. 2008 was the last time we were here. >> okay. >> it's just every time you see a network -- i remember nbc, when you bid on these things, it's like, what? and then -- >> the math doesn't make sense. >> and then the number is -- it's like that last number was a joke. it's amazing. >> yeah. the broadcasters do an amazing

job leveraging the product. it's not just us to bring people in, it's them promoting -- >> general motors said they're not advertising? >> they decided not to advertise in the super bowl. >> what does that say to you? >> i think that's -- >> says the government is running gm right now and they have no idea what they're doing. >> i think the gm moved on to another job right after that. >> does another manufacturer coming in? >> gm is a sponsor but just chose not to buy time in the super bowl itself. >> that's not required as a sponsorship? there's not a certain amount of time have you to buy? >> not on the super bowl but other properties. >> thank you for being here. >> dan ackerson, i'm kidding, he's done a good job. they advertise on this network, used to. our coverage of the nfl continues this morning.

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that's what got us in trouble in the first place. >> that's bill clinton taping an ad in support of president obama. tonight the former president will address the dnc. john poddesto served as clinton's chief of staff. john, it's great to see you this morning. >> good morning. nice to be back. >> what will president clinton say tonight for president obama? how does he need to address this audience? >> after last night when michelle obama laid down just a tremendous track on values and who barack obama is as a man, i think bill clinton tonight can reinforce the message on the economy, that there's a stark choice in this election between economics that work for the middle class and economics that led to the great recession and i think that he'll do his best to expand that 30-second ad into 15 minutes of really talking to the american people about what's at

stake for their economic future. >> the "new york post" has been trying to play up tensions between former president clinton and president obama. how much of a factor is that at the democratic national convention? >> zero. i think that president clinton has been out cam panning for president obama. they get along fine. they've learned to have a partnership. he know what is it means to sit in that oval office and are getting along fine. they'd have a great partnership i'd say. >> the question is what the democrats need to do this time around. there have been orts that the base is not as electrified as it was four years ago. it's been a difficult four years. my question becomes do you think it's more important for president obama to fire up the base and get the voters to come

out and support him or is this about going after undecided voters at this point? >> i think he needs to do a little of both pup couldn't fire the base up any more than those speeches by mayor castro and michelle obama. tonight we'll hear the argument to the independent voters about why their future will be better off with an economic program that invests in them, the middle class, working people, innovation, infrastructure and education. and tomorrow i think the president needs to really bring it home, tie those pieces together, make an emotional connection. we can make progress -- it's been tough but sticking with him will get jobs and wages growing in this country. >> john, what do you think a second obama presidency would

look like. i see some saying if the american people were to reelect the president, then we know obama care is here to stay and some of these issues republicans say are up in the air would be laid aside and it would be a time for him to come in and say -- an olive branch, i'm ready to compromise. it might not be a total republican congress but there's a potential for another four year of gridlock, which nothing wants. the journal has a piece on a second clinton and how successful he was. triangulation doesn't have a positive meaning to it but i don't think it's a bad word to be able to come back to the middle. maybe you orchestrated some of that. would we see president obama triangulate? >> we had a long that was hostile, speaker gingrich, the republican-led senate. we had a big deal in 199 7 that

created a framework for our budget going forward. i think president obama can do the same thing. >> would he, though. philosophically -- the case is being made by the right that he's not bill clinton, that he's not moderate, that he'll go further left. do you think he would triangulate the way bill clinton did? >> i think the facts belie that. i'm not sure i'd use the word triangulation. he has a set of core economic principles he's going to push and stand for but i think he showed his willingness to cut a deal with speaker boehner in 2011. that didn't work. the republicans demanded way too much, took the country to the brink. we saw our credit rating be down graded. i think after a post-election scenario, the president has enormous authority and power to

get a deal that's going to work for the american people, that will reform the tax code, get the revenue we need, concentrate tax cuts on the middle class and working people and provide the basis for important investments in, as i said, in innovation and infrastructure and education. that's what bill clinton pursued, it produced great results for people. that's the kind of economic program obama will try to pursue and i think he'll have the upper hand in trying to deal with a congress that's recalcitrant but knows that if it does nothing, the country will fall into recession. >> john, i want to thank you very much for your time this morning. we hope to see you back in studio soon. >> coming up in the next hour, facebook shares rear bounding this morning.

and nothing goes better with beer and snacks we'll huddle with indra nooyi, pepsi ceo. they have access to more resources than ever before. a steadfast commitment to help you achieve your financial goals in life. that's the power of the right advisor. that's merrill lynch.

making the case for four more years. >> we must once again come together and stand together for the man we can trust, my husband, our president, barack obama. >> top democrat being strategist and former presidential campaign guru bob shrum joins us for the next two hours. >> taking aim of business opportunities here and abroad. one of the world's most powerful women, indra nooyi is here.

>> we'll talk politics as the second hour of "squawk box" begins right now. >> good morning, everybody. welcome back to "squawk box" here on cnbc. let's get to your morning headlines. yesterday the dow and s&p ended down but they both stayed above those key levels, the dow above 13,000, the s&p above the level that we had bench watching with it, too. dow futures are up by 6 points. facebook shares rebounding by 2.5% after hitting post ipo lows yesterday. ceo mark zuckerburg says he will

not sell any shares for 12 months. meantime, growth in china's services sector fell to its lowest pace in a year last month. and fedex has cut its earnings guidance citing a weak global economy. analysts had been looking for earnings of $1.56 a share. >> the democratic convention rallying the base to reelect president obama in november. tonight former president blnt is going to be taking center stage. our guest host for the next two hours is former democratic campaign manager bob shrum. there's a worry the jobs number may not be great, the

manufacturing number wasn't great. >> auto number was pretty good. >> the auto number was pretty good. >> over the next month and a half if the numbers are not great, is there an argument at all from the obama stati administration that they should still stay in office. >> oh, sure. you saw it laid out last night. that was a powerful, compelling american convention. as the country saw, it was coherent. you observed earlier and i thought it was interesting they not only defended obama, an extraordinary talked about her child in terms of lifetime limits. you watch that teddy kennedy video. it's amazing he still has the capacity on film to move a convention the way he used to move a convention all the time and the contrast with romney. then you got julian castro,

deval patrick who gave i thought an extraordinary speech and to michelle obama, who said the president's trying to chang the country but he hasn't changed. the argument is going to be whose side are you on? who's fighting for the middle class and who is fighting for the few? joe doesn't want me to say this, who is for tax cuts for the wealthy and who is for tax cuts for the middle class in. >> it's a cut in marginal rates. everybody got a tax cut. >> when you have everybody getting a tax cut and most of the benefit goes to the top. >> but 70% paid by the top. >> 70% should be paid by the top. >> we still have a progressive tax cut. >> let's keep it progressive, tend the bush tax cuts -- >> you like all the bush tax cuts except the ones at the on.

>> yeah. >> you understand how the ones down here help the economy. in the economy we're in now, you're talking about any tax increase. >> i think over time as we move toward balancing the budget, 97% of small businesses are totally unaffected by this. >> 55% of the revenue are businesses that are -- >> but they're not small businesses. they're pretty big. you and i are not going to resolve this this morning have a fundamental difference that goes back to theodore roosevelt, theodore mckinley, it's a big debate in this country, we're having it this year. that's how he wins. he has that historic debate. >> talk strategy. is it possible this convention moves the independent voter or somebody on the fence or is this really about firing up the base? >> last night was partly about firing up the base. i think there's a lot less of an enthusiasm gap today than there

was yesterday. but beyond that, listening to president clinton tonight, he's going to talk to those undecided voters. the raspberry have tried to impeach him and lionize him. >> i brought this in yesterday. >> the "new york times." >> the juxtaposition, on the right they're talking about the ideological fight and they mentioned lyndon johnson, great society, fdr and then paul ryan and romney and their view. and right next to it is theerorrize as spaniards pull out their cash and get out of spain. here's the post. we hit 16 trillion today and that's not the entitlement. with entitlements we're at three times that. all the democrats want to talk

about are raising taxes on the wealthy. >> that's entirely unfair. the president was willing to make a deal with boehner last summer. >> we're not hearing about it now. >> we're having a big debate in this country. we're having a debate about medicare versus voucher care. by the way, let me take this. that's a word you're throwing around. let me go to facts. spain didn't get in trouble because it had a budget deficit. it got in trouble because it had banks massively overextended. and, and, let's take this paper, "the new york post," which is barely a paper but let's take it. $16 trillion of debt. there are charts all over the place including in the wall street journal showing most of that debt was created not by the president, it was created by president bush. >> let's do an actual -- >> do you really think mitt romney should pay less than 1%

on income of $20 million? do you really think that's right? that is the paul ryan plan. >> i will ask a different question and i'll ask it of joe. >> oh, you mean the place where the co-chair of the group came from the bush administration and romney cited in the campaign? >> i have a different question. i have it for joe. this is a straight up and down question, that mitt romney -- that mitt romney paid 13% and you paid more? >> wait a second, bob, isn't that something that's -- >> this is all carried interest? this is carried interest? >> are you for redoing our entire tax code? >> absolutely. >> to me this is a way of going back and saying you need to look at a plan that is much more like

simpson bowles, you bring down the rates but get rid of a the love exemptions. the real argument is we need tax reform. >> nobody as really talking about that. >> you're only talking about how bad romney is. >> it's easy to talk about how bad romney is, it's very tempting. >> bain capital. >> i made those ads for senator kennedy in 1994. wait a minute, wait a minute, wait a minute, 4 million jobs, 4 million jobs, 4.5 million jobs -- >> come on, you're a serious guy. you're an idealogue but you're a serious guy. the jobs lost in the first six months of the obama administration were certainly not because of barack obama. >> no one's saying that. but you can't take credit just

for the 4 million added. >> i think you've heard you say on the show before when you have an economic problem it, takes a while to turn that boat around. for the last 20 months, we've created 4.5 million jobs. how many jobs net were created under the bush straeadministrat? how many jobs net were created? you really can'tcan't answer th question, can you? >> when you're falling 500 feet, you can't give credit to the pavement for stopping you. >> i think we were on the abyss of the depression, i think if bush hadn't passed tarp -- tarp was critical. and by the way, tarp was critical and that money is all being paid back. >> $800 billion is not going to be paid back and you're going to have people arguing on both

sides. >> we are updating the infrastructure of this country all over the place. >> we weren't supposed to go above 7% and we're at 8% for 42 months. it didn't work. >> give me the five stocks that you think i should invest in in the next year. i'll come back in a year. you'll be wrong about two or three of them. no economic guess, no economic estimate is going to be absolutely correct. the president acted just the way franklin roosevelt. by the way, it's not just lyndon johnson and the great society versus paul ryan. it's theodore roosevelt versus paul ryan. >> don't forget jimmy carter. >> jimmy carter? >> if that's the law -- >> i'm not asking what the law is. i'm saying what the law should be. >> he doesn't want to answer the question. >> when you're talking about romney paying 13% --

>> if he paid 8% and gave away millions to charity, i don't think he's a bad person. >> it's not that he's a bad p person. >> do you think someone who is in the bottom bracket and pays zero tax, should they be mad at someone who paid $1 million? >> if you pay the million you pay, do you think someone who pays zero should be mad at you. >> he paid less than -- >> i go back to where becky is that we have to come up with a plan that will work for everybody. >> it has to broaden the base. >> it was progressive as it was at the end of clinton.

>> but the income concentration has gone up during that period. the income inequality is huge in this country. so you've got to have a tax plan -- look, the wealthy people are doing fine. you just brought up clinton. let's take him right back up -- >> is the private sector doing fine, too? >> the private sector is doing pretty well but has a long way to go. you brought up clinton. >> i brought up carter. >> no, you brought up clinton just a moment ago. you said the percent people at the end. let's go back up to that 39% top rate when we created 22 million jobs, paid down the debt and had a surplus. >> that's not going to solve or problems. we need to redo the whole tax code. >> by the way, if you did raise that top rate it would begin to solve the problem a lot because it would bring in a lot more revenue. secondly, you do have to do

entitlement reform. by the way, if the republicans and john boehner had agreed to go back to 2006 i think you would have gotten a deal on entitlement reform and tax reform. boehner i think wanted to do it, he went back to his caucus and got the lan and hungry look the eric cantor. >> both bases were opposed to that deal. >> the president would have sold that deal. the president has sold a lot of things his base didn't necessarily like like no public option on health care. >> okay. let's leave it there for now. bob is going to be with us for the rest of the show and we've got a lot to talk about. >> where's a 99? this is not a 99? oh, it is. coming up jets owner woody johnson is like -- have you seen wrestling where the guy goes over and tag as ps a person to

in and help him? i have woody. it's like eight against one. first, though, this is a -- it's become an annual thing on "squawk box." it's back to school time. i want to wish my daughter blake good luck as she starts the seventh grade. she's talked to a lot of people, it's you superfluous, she has a accomplished principal, dr. peter called well at her school. >> kimmy and natalie, kimmy is going back and natalie is going to third.

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joining us from new york, woody johnson, owner of the new

york jets and tristate chairman for the romney victory campaign of 2012. woody, how are you? we want to talk football obviously and you probably want to fill that stadium. that really is a -- purple's not your color, it's green, but you want to fill with democrats and republicans i know. what do you have to say to mr. shrum here? i don't know if you heard that -- >> i did. that was spirited. i still get back to are we better now than we were four years ago, with 23 million unemployed, $16 trillion in debt and i'm hearing the same arguments, that it's all the predecessor, somebody else's fault. eventually you have to take responsibility and hopefully we'll have a change in command here and get somebody in who will take responsibility for curing those problems.

>> if you ever mentioned food stamps, the journal, they go out on a limb because it's a politically incorrect -- if the recessi recessi recessionin recession ended three years ago, it's 1 in 7 and it's growing every year. 3.3% high are than a year ago. people need help, we want a safety net but that's not something we wear as a badge of honor that that many people are on government subsidy. >> i agree. joe, that's not the kind of country we want. we always want to be a compassionate country and help people who are truly in need of help. but that's not everybody as an american, that's not your aspiration to be on food stamps and be on government aid. the government should help you

get going or when you're down on your luck help you out but not forever. >> i think it's going to be an overriding theme in the convention and i heard last night is the person that's going to help people, that need help, it's going to be barack obama and the government. they're the people that are going to be there to help. and we're going to change things, we're going to make things okay but there's no talk about the private sector, about entrepreneurialship. >> it's a government. we know how well government does thungs in general. the private sector has beat government in every single case. do you want government having 20%, forbes, obama care is 20% takeover of the domestic economy. by the government. is this what you want? >> something that big without any -- >> the law is not even written

yet. the folks down in washington will rewrite that law and i guarantee you it's not going to be in the best interest of the american people. >> i hope you're a giants fan, bob -- >> if i wasn't a giants fan before i listen to him and see what -- i'm actually a patriots fan. >> even a bigger hole, woody. >> the fact of the matter is the health care plan is a republican plan. it is not a government takeover of medicine. it relies on private money. under this president, he inherited what was about to become a depression. bush had done something that staved it off but we were still standing on the abyss. i believe all of these arguments are an attempt to make this a simple referendum. if you feel kind of bad about the economy, vote for romney who spent about ten seconds on his economic plan in his acceptance

speech. i think the president is going to make this a choice on medicare, on who stands up for tax fairness, he's going to make it a choice on jobs and you're going to hear bill clinton do it tonight. he's going to do it a lot more effectively than most people can. >> i think bill clinton can do a pretty good job. >> you guys have been trying to adopt bill clinton but he doesn't want to be adopted by you. >> there you go again, you're talking about bush and previous presidents. >> you know, hoover did preside over the great depression and bush came close to presiding over the second one. >> just imagine new york state with 19 million people -- >> what was that, woody? >> i'm just saying the vastness to try to get your arms around how many people, 23 million people either unemployed or underemployed is just an enormous number, 8% for the whole barack obama term is just absolutely unprecedented. it never happened before.

>> you guys think you can run a simple protest campaign. i'm going to bet you it's not going to work. by the way, what tax rate would you play under the ryan plan? >> you guys are taking your eye off the ball. the ball is getting people back employed. it's not what i pay in taxes. >> i hear the music, woody. good luck this year. >> thank you very much, joe. >> who is going to be the quarterback at the end of the season? >> sanchez. >> without hesitation. >> will the ref lockout end? >> that's certainly that roger is looking at. we're going to have enough trouble just playing our game. we're going to focus on that. >> woody, thanks for coming on today. >> still to come this morning, an exclusive interview with pepsi ceo indra nooyi. at optionsxpress we're all about options trading.

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mortgage applications fell 2.5% last week. that drop came despite a small declean in mortgage rates. 3m is denying reports it is abandoning a deal to buy avery dennison. 3m says it will work to address the department's concerns. and one economic report on the docket today, the government issuing revised second quarter productivity figures. forecasts are are calling for an annual increase of 1.9%, better than initial estimates. >> the 2012 football season is here and the nfl is kicking things off with pepsi, salty snacks, cold bef rajs. let's talk gameday strategy with

indra nooyi, the chairman and ceo at pepsico. what would you do without football? who has football withouts to titos? >> it's more than toast titos. >> i know, but with the salsia. >> first of all, it's a delight to be on "squawk box." i read your background. you're a molecular biologist? the next frontier of the economy. i'm delighted to meet you and you andrew and becky and you, bob. i think if you look at football, it's one of the greatest institutions of the united states. 180 million people watch it every year, it creates so many jobs. it's wonderful for the economy but what's wonderful for pepsico is you can't watch a gave in the man cave without door itos. when you watch the game you need a pepsi to keep you hydrated.

on the sideline you need gatorade to fuel the athletes so we're a complete company that takes football and activates it in ways that is just sprar. that's what makes it partnership between pepsico and the nfl so special and what makes the kickoff today so, sighting for all of us at pepsico. >> we've had a lot of conversations about big gulps and mayor bloomberg and a nanny state. once the government is responsible for. >>'s health care, that's when you think it's a good idea to start taxing this evenings like that. >> the guy from cleveland clinic, fully on board. do he said you tax cigarettes.

>> i say start off with positive intent. we have to assume positive intend. i'm going to start off saying mayor bloomberg means well. he wants to address the issues of society. if you want to address the issue of obesity, let's truly address it, put physical education back in school, improve the quality of meal. let's address it comprehensively. imposing discriminatory bands on one product is not going to solve the problem. >> isn't it owe in moderation? can't i have door itos once in a while or egg mcmuffin or can't i have a 32 ounce soda if i have it once a month? this is preposterous. it's maddening. it's what happens when you think everyone's health care is -- >> leave the health care alone. answer the question. the government has had health care programs as soon as time in memberium. medicare was passed in 1964.

>> i just heard indra suggest -- would you no longer sbs daisuke the corn industry for example? you just said maybe you would change, you know, how -- >> i didn't say i would not subsidize the corn history. i would align subsidies for agriculture and nutrition. find a way to subsidize or provide incentives for growing fresh fruit, vegetables so the prices of those don't go out of control. make it affordable for people to buy corn and buy fruits and vegetables. we've got to find a way to align the subs disease and incentives. >> what were happened if we removed all the subsidies across the sfwhoord. >> we can look at every option on the table, andrew. i think we have to make sure we don't do this evenings in a hearkie jerky way what we create bigger problems for the economy. >> do you consider you're trying to make things less harmful. heart disease because of red

meat there was a cascade of scientific evidence, which has been refuted most of it. one study says one, one says another. when you're making fritos more amenable to the ruling class, do you walk a fine line? you're still putting some things in are that are perceived to be bad. how do you know whether to make it totally tofu or stay with doritos? >> nothing is bad. anything in excess is bad. too much water is bad. >> it's called drowning. >> too many of of anything is bad. what do we do? i think the food industry is doing this on its own. reduce the salt level but don't give up on taste. reduce the fat levels. reduce the sugar levels. take the zero calorie and nudge consumers to buy more of that and take the good for you are products and make them great tasting so people never have to

compromise taste for health or health for taste. it's not an either/or. it's an and. give consumers the choice, fun for you, good for you, better for you. let you as the consumer choose what you want. >> some analysts would suggest you've spent too much energy, too much folks on healthiness factor, that from a business perspective that the company may have done better had you focused literally on just selling pepsi. >> there are some people who say that. there are others who will say what are you doing? at the end of the day you cannot cater to one analyst. you've got to look at thein vestors base overall. you've got to think about the sustained ability of pepsico for put decades in the future. >> can you give us an update on what's going on with ralph woodward, who made an investment? he's an activist?

>> he's an activist for the country. i view him as an external activist, i view myself as an internal act advice. >> is he pushing you to break up the company? >> no, he's not. i told him if you have an idea of how we can run the company better, give us a shout. we want to listen to investors. >> has he brought you any good ideas? >> he's brought us constructive dialogue. >> i watch this show all the time. these are the results for this quarter, this is the guidance for the next quarter. how do you push a company to look say to the next ten years,

the next 20 years. >> bob, you're touching on perhaps the most difficult issue. this goes back to the discussion you all were having about the economy. if we're going to talk about rebuilding our economy ground up, we have to take a multiple decades view of the country and of companies because we have to help build the country. joe, you were talking about freein enterprise and making sure we don't let let government come into companies too much. if companies have to just deliver for a quarter, you will always do the wrong thing. but if you think in terms of multiple years and decades, you will really build the underlying base of the company. right now with the 24-hour news sykesle and very fickle investor, i think it going to be very hard for companies to really think long term unless the ceo and board of directors have extraordinary courage. >> you've doubled sales since you've been there yet the stock

price has lagged. >> lagged what? >> lagged coke. lagged some of the competitors. how do you think about the stock first? >> if you look at it over the past decade we shall have outperformed everybody else. if you look at -- take the period puerto rico 2000 to 2012, within company goes down from 2001, 2006, rebounds 2006 to 2011. we delivered steady results over that period. which is better, andrew? boom/bust or steady, sustainable growth. the problems being asked of these guys, what happens with these questions is you force companies and ceos to manage for the duration as opposed to the duration of the company. that to me is a fundamental problem. i became ceo in 2006. what's the thing could i have done? crash the financials? everybody will say she created

alpha. what alpha? i crashed the company but i looked good on my tenure. instead i say no, i've got to run this company sustainably over a long period of time. i don't care if somebodies was underperforming and now performing. i have to think about the duration of the company pi i think you should look at me and say that a girl, did you a great job. if you look at our numbers over the past decades, which is the way we should man and companies we shall did a great job. >> you did a great job. >> goods and. >> i can't believe coke doesn't have -- you think i'm smart, independent not a smart man. but salty snacks and beverages. that's like peanutbutter and jelly. >> coke doesn't have it. >> all those synergies and mergers, they never work but salty snacks, think, andrew, think. >> that's why you're a brainiac. >> she's kind of right about this one. >> this is salty.

i need a bring drink. oh, here's a pepsi. now can i have more chips. now more pepsi. see? you got it? >> i got it. >> indra, thank you. >> coming up, more from the dnc convention. our guest host bob shrum is going to talk campaign strategy and image. in the next hour congressman chris van hollen will speak at the convention but we're going to talk to him first. ♪ ♪ [ male announcer ] introducing a reason...to look twice. introducing a stunning work of technology -- the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection. the economy needs manufacturing. machines, tools, people making stuff. companies have to invest in making things.

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welcome back. analysts say the device could be nokia's last major shot to win back market share. google tends to show off its latest phone today. amazon will unwrap its new candida kindle fire. and apple is unexpected to unveil the latest version of its iphone on september 12th. do you know when i'm eligible for a cnbc upgrade of my phone?

september 10th baby. >> are you switching over? you're never going to be able to type again. >> i don't care. have you ever tried to go on the internet? >> i have the new blackberry, which gets me on and i wish the iphone would put a keyboard in it. >> people swear by iphones and at their blackberries. >> i had a conversation about this. if you build it with a keyboard, i will come. >> don't you use an ipad. >> i use an ipad but that's big. my fingers work with that. >> is it really hard only? >> for me, not for you. >> empty chair. >> i was just talking to it. >> hey, you were just talking to me. >> both you guys, you're both young. gasoline prices climbing nearly 7 cents in the past week, reaching the highest level in

mid april. the main reason, refineries were shut ahead of hurricane isaac. the average price $3.84. and dollar johnson is reporting quarterly profit of 69 cents per share. the retailer raising full-year guidance based on strong same-store sales gains. >> let's get more on the action at the democratic national convention now under way in charlotte, north carolina. our guest host is bob shrum, a former campaign manager and democrat being strategist. bob you, you said you wanted the question are we better off now than we were four years ago? >> sure. four years ago we werin on the verge of a depression, on the verge of losing the auto industry. you might have soon a collapse across the entire world that would have blown up as your guest from auto nation side earlier in the segment, might have blown up capitalism.

we might be in a whole different place. a lot of the complaints about obama remind me of when franklin roosevelt intervened in the 30s to save the system and he said afterwards he felt a little aggrieved that people were so angry at him. we passed dodd-frank, which i think is good, and we're strengthening regulation. we passed the stimulus, which joe hates. we bailed out the auto industry and i think it was one of the smartest decisions. >> i'd rather have the $800 billion back. >> when i hear you talk about it, you sound pretty emotional. >> it went to union employees in most of the states. >> no, it didn't. so your idea of a teacher, a -- first of all, over 38% of it was

tax cuts, your favorite thing. huge percent of it was infrastructure. tell me the percent. >> i don't think you found a single shovel-ready project. >> all you have to do is drive around this country and you see r where you go, this highway being done by the recovery act. >> was solyndra a part of this? >> you guys are crazy about this. right now we have a 600% increase in solar power in this country. of course you're going to have some things that don't work when you invest in them. the private enterprise system couldn't have done the manhattan project. and the private -- >> people come in and say the government should stay out of the ven tire capital business. >> the kind venture capital we were talking about was research and development into new

technologies that were too expensive to be developed by private enterprises. >> basic science. basic science. >> were you against the apollo project? >> no but you can't pick winners and losers. >> what's the difference? you're not picking winners and lossers. as roosevelt said, sometimes we're going to have a dead end. >> you've got the boom in domestic energy now. you didn't -- >> the administration has facilitated the vast increase in the production of natural gas. all of these republicans want to talk about the keystone pipeline except -- it can't go over the biggest object way fer in some of these. >> back to the jobs picture.

8.3% unemployment. you said yourself we don't want to be here. the jobs report we have coming on friday is pretty key. expectations are for an increase of 125,000, which is a step down of what we had seen last month at 160. it's hard to argue where weed be but we know we're looking at that jobs number very closely, not on the 125 but whether the 8.3% comes down. how do we attack that number? >> you're right about one thing, it's really hard to argue the counterfactual. joe, let me answer the question. our campaign is the guy was handed a mess, he's done a number of extraordinary things, that romney would take us in exactly the wrong direction, that he would stand up for the few, the president is fighting for the middle class. joe biden had a great lien about

it the other day. voucher care versus medicare. >> i'm willing to stay on your question but you won't let me. >> we were on the precipice of a depression -- >> the stimulus did not save us from a depression. >> first of all, you hated tarp, now they want to claim tarp saved things. when the g-20 met in london, there was consensus among the folks that we were on the verge of a depression. >> the president focused on health care instead of on jobs. >> that's false. he proposed jobs bill after jobs

bill that have been blocked by republicans. nobody think he's could have gotten another stimulus. he got the original stimulus by one vote. he then made a deal at the end of 2010 where he got an extension of the bush tax cuts and gave the extension for the wealthy in return for extending unemployment compensation and some of these income programs that joe hates. >> the private sector was doing a bang up job in 2008. >> they needed him to get out of wait and not bash every industry, insurance, oil. tdd#: 1-800-345-2550 when i'm trading, i'm totally focused.

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you guys thought the conversation stopped when we went to commercial. boy, are you wrong. >> you said 52% of the vote is going to go to romney. i said i'll bet you a hundred bucks straight up. you said no. you said no. >> i was talking about a university of colorado study. >> you didn't cite the university of colorado. sitter there you said 52%. i said i'll bet you, you said no. joe, you don't believe in mitt, do you? you're like the republicans at the convention. you don't believe in mitt. sound of one hand clapping.

he said 52%. >> how about 51.7. can we round up? if we round up. >> hundred bucks on the table. >> i'm ready. >> when we come back -- >> is betting legal? the state? >> coming up, we'll talk jobs, taxes and the economy. and then it's football season. we have steve tish and jerry jones joining us when we come back.

we're going to talk slogans.

>> and we have the owners behind tonight's matchups. cowboys owners and giants owners before their teams take the field coming up on "squawk box" right now. >> who is going to be inaugurated? >> i'll bet you. obama is going to be elected. will you bet on your 52%? >> you've had three different figures. you won't bet on any of them. you must be scared to death. >> welcome back to "squawk box" on cnbc. the whole campaign is unhenniin.

>> our guest host this morning -- you're a democrat? >> no, i'm an independent. >> he's a professor at nyu, bob shrum. we continue to trade above 13,000 on the dow and 1,400 on the s&p. had a pretty nice come back yesterday. >> michelle obama speaking to the democrat party faithful last evening emphasizing the president's commitment to the middle class. take a listen. >> he believes that when you've worked hard and done well and walked through that doorway of opportunity, you do not slam it shut behind you. no, you reach back and you give other folks the same chances that helped you succeed. >> former president bill clinton is going to be taking the podium tonight and president obama will speak tomorrow. more from the convention in just

a moment. >> phase is now promising not to sell stock to cover a nearly $2 billion tax bill. it will cover it with existing cash. total shares outstanding will be reduced by 100 million shares. that has the effect almost of a buyback of the equivalent, if you will. rank and file employees can start selling stock on october 29th, though ceo mark zuckerberg saying he won't sell stock for at least the next 12 months. shares did rise in after hours trading. in other corporate headlines, fedex is slashing its profits for the quarter.

rival ups lowered its 2012 forecast in july. fedex shares falling in after hours. >> let get back to the democratic convention in charlotte. last night seiu president talked about what's at stake for working americans. >> middle class americans cannot afford four years of romney economics. we need a president who fights for us and that's what we have in president barack obama. >> we have such a large union president set. does he need to join us from the convention is form are tresor president ant --

>> it really was a defining moment about asking the right question of who is going to goff rn for the middle class. >> andy, the president himself in a television interview earlier this week said he gave himself an incomplete grade when it came to the economy. what grade would you give him? >> i would give him a very solid grade in terms of getting the economy to a stable place and putting together the policies that were going forward but it needs more work. which direction is america to go for the next four years. are we going to goff rn for the middle-class like we heard mish shell. >> i think really it's all about

jobs. it all about whether people who go to work, like the parents of julian castro or michelle obama can have health care, can have a home, raise them to grow up to become great american leaders. i think the american dream is at stake. we have two -- but it asked americans what they thought it wasn't to be in the middle class. the strongestans that anyone come back with was jobs. more than 60% of the people said if you have a steady job, that puts you in the middle class. if you push back to 1991 the answer was owning a home. it got me think about i guess it

gets down to how you divide that and what message you're trying to get out there. what do you think of some of those numbers? >> i think what people are saying is the right thing, which is the american dream is about working hard and seeing your children do better than their parents. that was what what was on display last night. we should remember had we passed some of the propose as that president obama had put forward, particularly about putting teachers and firefighters back in the schools and back on their jobs, we would have an unemployment rate that so i the think but are we going o work to the and come together and make a real future for america and all

of our kid. that is what president obama is trying to do. >> that's what a lot of that original stimulus was for, there was a point where the state were able to come back and. there was an op-ed piece yesterday that posited the idea that no is what do you think of that idea sp. >> i i this theoned juts get out of the way and deregulate and hope things come true. we've had the most massive change in history. and it's happening really fast

and we have to govern for the future, not for the past. i think what we're seeing is it's going to take a lot of work by government and business and americans to come together and get this done. we cannot just go back to this trickle down, deregulating, privatizing. >> again, that gets back to what you think is the most important focus. what do you do you think needs to happen in the front is i think there's the that's not coming back to america. we should. >> i know people like to talk about sill endra be but we need

to make morin vestment in the future of energy involvement in this country. and our roads and bridges and sewer system need a lot of work. >> andy, a lot of people have made the argument that this is an election where we are going to choose one road or the other but you also look at polls that have this pretty much neck and neck at this point. is there any way to bring the other half along, no matter who gets elected, or to say you have a mandate? >> i think it important for the president to keep talking about how america is at a cross roads, the country need as plan. andy drove said the up in one

job a nag state in the 21st century is to create jobs. he's created this global resolution. i think america just has to get up every day, get business back in this discussion and create some real new, fulfilling and well pairing american jobs. >> you a you. we're going to talk to two guys with a take in the game they'll go head to head when box boggs returns. [ male announcer ] what if you had thermal night-vision goggles,

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the super bowl champion new york giants host the rival cowboys. who better to preview the game than the owners. great to see both of you gentlemen.

you know steve is the on guy with two super bowl rings and an oscar. are you going to try to figure out a way to get an oscar, jerry? >> he's the king. when i see him at los angeles, i go over and take a napkin and serve him. >> he's trying to disarm you before tonight. >> jerry is very, very disarming. three and a half hours tonight we're going to be competitors but we're as close as anybody in the nfl can be. i admire jerry, i'm a big jerry jones fan. i think what he has done for the league, for the state of texas, for the city of dallas is just unbelievable. he's a great first class guy. >> steve, be sweet to me. >> the football giants are coming strong. you're not worried yet they're going to ever be america's team,

are you? i'm trying to get something started between these two. >> well, you don't have to go very far. we have enough facing us here in the next few hours. one of the reasons i wand to be part a part of the nfl 25 years ago was because of the great tradition that the new york giants, for instance, represent. boy, i'm telling you, when i'd come to new york and see how this city gets around and gets excited for nfl football, it made me want to somehow get a part of that. here we are kicking the season off, playing the world champs. they took it away from us right at the end of last year and did a fabulous job. >> took is a verb, right? >> took it. >> one thing i got to say that i like is to try and survive in new york as a coach or a player is so hard. and to see coughlin sort of keep his head down, he never really

gets involved too much. he doesn't pop off really. >> great guy. >> to see it happen to him is great to see, isn't it? >> tom is so focused. >> so you gave him at least another year. >> tom's got a good deal. tom's got -- including this season, this season plus two more. he's been a fan tas uk coach meech gets his players to play for him. he doesn't want to be on the front or back page of the "new york post." great coach, especially in a city like new york. we've got a great coach. >> you weren't expecting a win. i went to the gape, the green bay game and you just missed on that. but then to take it all the way to the super bowl, you weren't expecting that. the last one was unlikely, too. >> we had a very turbulent

season last year. we started early well and sunk pretty low and faced with literally having to win the last regular -- three, four regular once again played the patriot, which i thought super bowl last year was even if possible -- >> do you think it okay that eli is wearing those fairy wings? were you his agent for those commercials? he's fliting around. >> eli can wear whatever he wants. he really can. >> you wouldn't let romo wear though, would you? >> i don't know but i wrote his father a note after we played the giants and i wrote him a note of just how outstanding his comeback was against us and to come back in the fourth quarter. he's made a believer out of me. i used to think he was just

throwing that ball up sometime and whoever got it got it but i don't think that anymore. he's really outstanding. he's proven that. >> that sounded like trash talk to me. i'm not going to say he just throws the ball and touches it. >> oh, jerry was talking? i wasn't even aware jerry was talking. >> you are trying to get it going. jerry, can't wait to see you later. >> good to see you, steve. let stop smiling now. get your game face on. >> a fan wants to know how jason witten is doing in any update on his situation? >> we'll see tonight when we come out if he is going to be on the field. he is improving. >> i have a quick labor question. what do you make of the lockout

of the refs? it only would save each team about $62,000? >> we've gone into these discussions, you know, with a very open mind and a real desire to settle and it's been difficult. tonight we are going to have replacement refs. >> is that a problem for you in your mind? >> replacements? no. >> some people have said it's been embarrassing, they've made bad calls, they've mispronounced names. >> oh! >> i mispronounce names all the time. >> i can't believe what i'm hearing. >> how did you feel about moving the opening game so the president would have a clear shot at the speech. >> you know, i was fine with that. >> did you mention it to him when you went to the white house? >> i didn't know then.

>> i know steve and i know his brother very well. >> the president never said that before he answered that question. >> are you taking credit for building that or -- i mean, america's team sounds government built to me. >> i'll give him credit for the road i drove on to get to dallas. >> beyond that -- >> but cyriously we know the fans. and if you want to say, okay, that's taxpayers but the fans have created the interest in the national football league. in that sense i've never felt like i wanted to own the dallas cowboys, the fans do. >> smart answer. >> jerry just mentioned the

fans. all 32 teams in the league have the greatest fans in the world, sort of representing new york city fans, new jersey fans, connecticut fans, it's thrilling and i know jerry feels the same way about his fans. so when we play away games and we got giants fans showing up in every away city and jerry has his cowboys fan showing. i didn't know word content for television, i would never vemd that will watch our games and be the top programming of top.

>>s out at the field earlier and right now it's still level. >> they're probably working on that. >> if jerry wins tonight, can he have that oscar? >> well, jerry and i -- >> is that a no? >> the. >> i'm going to -- >> steve will. >> good luck to you both. >> it lab fun night coming up. >> michelle obama kicking off the democratic national convention in charlotte last night. in the next half hour we'll talk campaign advertising. and we're going to ask congressman chris van holland what he expects to hear from

president clinton tonight and ba >> this is based on neuroscience. it just seems like games but it is serious brain training.

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we see interest rates still predominantly on the low side. we see the european counterparts like the boone rates moving up. hope springs eternal they will buy everything in sight and keep interest rates low and spark european growth. but we'll really see what's going on tomorrow when we get some announcement from mr. draghi and the ecb. back to you. >> thank you, rick. becky, who i think may have some information on why the futures seem to be moving the way they are. >> we've been getting some word from the ecb. the ecb is declining to comment on reports that mario draghi is about to unveil a limited bond program. the euro also benefiting from the reported comments but again there's been a lot of speculation out there about what we can expect to hear from draghi tomorrow. some of these reports again did see an early bump but have settled back down.

ecb is not commenting right now. >> what do you have to say about mr. draghi? remember a plan for a plan. >> let's wait for the plan. >> it unlimited there. >> it's been up ever since you doubted him that day. the market's been up, the euro's been up. there's that skepticism. >> i think mario was watching. he was like, i'm going to show that sorkin. up next we're going to talk campaign ads with the ad man behind bmw's slogan "the ultimate driving machine. today, our financial advisors lead from a new position of strength. together with bank of america, they have access to more resources than ever before.

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as we mentioned earlier, the ecb is declining to comment on reports that mario draghi is about to unveil an unlimited bond purchase program. everyone is waiting for the official word on this. s&p futures slightly higher. we have seen the euro also benefitting from some of those reported comments. >> it won't set the yield caps.

>> that had been a discussion. do you say if the spanish ten-year goes above 7%, we will make sure it doesn't do that. >> so at this point according to these reports, we're saying it would not set that yield cap. unlimited buying, that's a pretty big deal if that's actually the case. >> i'm still a little skeptical. i'm not there yet. one day it will happen. >> you don't want to bet on it. >> i don't want to bet yet. >> let's turn back to the convention. first lady michelle obama kicking off the democratic convention last night. representative van holland is a five-term congressman from maryland. sir, thanks for being with us tonight. >> it's great to be with you. >> i know you'll be speaking tonight. what do you plan to say to the audience? >> i'm going to talk about the different choices the american

people face, especially with regard to how we face our long-term deficit. the president has put forward a balanced approach saying we have to make some very tough cuts but we should also ask folks at the very high end of the income scale to pitch in a little bit. if they pay nothing, everybody else gets hit that much more. that's what the ryan/romney plan does. >> congressman, we have been having this conversation around the table here today. obvious there's a lot of politics on both sides. some of the people that we've spoken with, including people like simpson and bowles, including dave walker, who has talked about this have said what you really need to do is broaden the base. you need to have however much,

you need to broaden the base. >> get rid of deductions. >> get rid of deductions. >> tax reform. >> what do you think ultimately is going to be the answer beyond just the election season sp. >> i think tax reform and tax simplification has to be part of the solution here. the issue is as you go throughout tax code, which exemptions and exemptions play an important policy role and which do not? which that that have been inserted do not have a good cause? i think the way to go this is now, the independent tax policy center which you know mitt military praised earlier in his campaign did an analysis of that plan and said in order to do it and keep it deficit neutral,

which is what they say they're going to do, you're going to increase taxes on midfamilies. >> but that was working on assumptions that had to be made because mitt romney did not make those clear in his plan -- >> and simpson bowles also comes down with a 26, 27, 28%? >> they find a range. >> if we go to 39.6 on the high end, will democrats finally be happy we go back to rates on the high end earners? >> so you're going to endorse it? >> i'm almost ready to. i'm ready to. >> look, the issue as you know is the revenue you have to generate in order to reduce the deficit in a balanced way. so the question is how do you do that in a way that we're all in

together, where we share responsibility. during the clinton years when we went to that higher rate, the reality is that the economy boomed because there are a lot more important factors driving people's economic decisions than small changes in the top rate. >> but you have to let them all rescind to get back to raising that same amount. we've got our republican colleagues' position saying they're not going to ask anybody to contribute another penny. you heard mitt romney during the debate whether he was asked if he would take $10 in cuts to $1 in revenue, he said no way. paul ryan signed the --

>> and simpson bowles says you need to bring down spending for every $1 that you raise in ef we can't get rid of tax incentives which go to the blook good and the blook good is in the eye of the beholder. simpson bowles is going to be very unpopular on putting limits on how much can you deduct with your mortgage. some of these things are sacred in the eyes of a lot of people. you're going to have to take some pain to get to those numbers. my question is is everything on the table for debate? >> i think we should look at everything in tax reform. the fundamental principle needs to be we don't make our tax code less progressive. we don't shift the burden in the tax code from higher income individuals to middle income

individuals. if you look at the proposals put on the table so far by the romney/ryan campaign, the tax center, their analysis, says middle-income families will pay about $2,000 more in order to make the cuts, if you make the assumption that mitt romney has said they will make. took at the end of the day, you're going to be asking middle-income taxpayers more while higher end folks like mitt romney pay less. >> one question off this topic. how does it feel to prepare and get inside paul ryan's head soap can you play him in the practice debate with joe bidenen in. >> i sit -- must say i was

surprised by paul ryan's speech. the fact checkers were like playing a game of whack a mole. >> be careful. if you look at a lot of those ideas, it could be like a stockholm syndrome type thing. >> i bet he'll end up better than paul ryan did. >> don't look at those too hard, they might start making sense. >> i'm not going for an academy award. >> we'll continue this political conversation. our next guest provides insight

on how to get their message across, especialand famously yo the line "the ultimate driving machine" for bmw. >> i'm guilty. >> as you think of these conventions as grand infomercia infomercials, if you were to rate, for example, the republican convention. how did they do? >> well, both the democrats and republicans, aside from the very sophisticated stuff that the congressman was wok, the go. the democrats are still looking for an excuse and the republicans are looking for a

flag to get march behind. after three days of television coverage and tens and millions to produce it and thousands of man-hours to create it, people are only going to remember two or three simple things. >> clint oo eastwood would be remembered. >> i knew you were going to bring that up. >> you're going to try to defend him. he took a lot of attention from romney. >> he did. i've been asking around town. my first reaction was shock and awe. i think it will do as much good as it did bad. >> all you had to do was look at ann romney's face. that red light was going off and off and off and he wouldn't take the hook. romney's acceptance impeach was the lowest rated gallop has ever

tested. why do you think that is? >> it was an adequate convention. i think his speech was workman-like writing delivered pretty well. he almost has a great story but it hasn't been refined. >> if you were going to refine it, if romney called you tomorrow and said make me a commercial, get me a flag that i can get behind, what does that commercial look like? >> i've been thinking about that. if i were running his campaign -- >> this was not set up. i did not tell you i was going to ask this. >> it's a good lead-in. i've been thinking about why he hasn't been able to simplify because i don't think it's that difficult. i'd connect his experience for what it would do for me. i've spent all my life creating value for my seld hold who

trustth me, millionaires, billionaires. the truth is my shareholders were pension funds, teachers fund, fireman funds, a lot of people that we helped and made very happy with the way we performed. so the story is each and every american is a shareholder in this country. and i would pledge i would create value for each and every shareholder in america. >> write the commercial for obama. >> that's more difficult. >> because he's not for obama. >> i'm an independent who would prefer to be a republican. i think it's called a rockefeller republican. >> i wouldn't want to talk about it either but if you have a right track/wrong track disparity that is locked at 31% and you've had four years to

make your case, you've been there for nour years and you've got people saying 31% more, 31 is bigger than any other gab, that we're on the wrong track, that's tough to overcome. you're below 51% approval. >> you and i could get out of the back and forth of just arguing with each other and be analytical for a minute, i think what's remarkable about obama is he under normal circumstances, all other this evenings being equal, if you looked at the problems in the country kmi and looked at those numbers, you'd say this guy's gone. i don't think he's gone. he's 9 points ahead in ohio. one, even though this will upset joe, if we don't talk about it a lot, they blame bush.

you'll are number two, they think he's done some important this evenings, saved the auto history. and you know what? tha thats number three, they liked him and number four, the democrats came up with the right frame for this campaign, which was who fights for the middle class. who fights for you and who fights for the fugue? >> i don't know that the middle class thing is going to work that strong. >> the numbers all say it is. >> ask harry truman. president thomas e. dooley. >> do you think these negative campaigns work? negative as compared to "morning in america" as an adman. my good friends boston

bostonle bostonlety. >> i think there's we got to go. we're on a commercial. thank you for being here. appreciate it very much. >> anyway. >> when we come back we'll head down to the new york stock exchange for the latest buzz on wall street. stick around. at optionsxpress we're all about options trading. we create easy to use, powerful trading tools for all. look at these streaming charts! they're totally customizable and they let you visualize what might happen next. that's genius! strategies, chains, positions. we put 'em all on one screen! could we make placing a trade any easier? mmmm...could we?

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we'll get down to the new york stock exchange. jim cramer joins us now. good to see you this morning. a couple things on tap. ecb, news, maybe news, no comment yet? i don't know where you are on that. i was also curious on we'll call it day two since we talked about facebook yesterday now that they've put out that announcement last night about mark not selling shares and effectively buying back shares but less shares that are going to go out on the market. >> look. ecb, the market, the cyclical stocks were all down before we heard the rumor of ecb, of course down off fedex. ecb trumps everything. i don't want to even leave a moment of doubt. if you want to know where caterpillar is going to go, where the rails are going to go, it's ecb.

facebook, i think we all know, andrew, what is ailing the company is a desk top to mobile strategy. sure it is great z man will not sell. it's just a filing. wouldn't we have loved it if he came out and looked into the camera and said i'm not selling. at the same time, look, any reprieve and any positive news greeted positively by the market. >> maybe you ought to barge it up and buy some, jim. >> well, there are a lot of other opportunities i think. >> zuckerberg, couldn't he actually say i'm buying? >> he has to wait six months. >> he can't even buy or do anything. >> yeah. because of the rule 16 b. you can't do short swing profits either way. if you sell you got to wait six months to buy. >> just for tax reasons? >> no, s.e.c. they don't want short swing trading. could he indicate he wants to buy? absolutely. >> i think he would tell you that's a good rule. >> he has a lot of it.

i mean, in terms of like asset allocation, just to offset facebook. >> what else you looking at today, jim? >> well, look. dollar general does matter because it is a good quarter and we need to continue to focus on earnings on domestic. there's been a lot of comments you got. by the way, great discussion. it was better than the gop democratic debate. i loved it because it really did touch on the -- i loved bob. he is going to come back and depending on who wins we'll do the exchange right here on tv of the bet we make. you want to do a hundred dollars. i said i don't do bets unless they're 10,000. >> he is a romney guy through and through. >> you guys are much more entertaining because what happens is that you're actually dealing with the facts. and you're arguing over what i think the whole country is arguing over. >> facts today? i haven't heard a single one, jim. >> i think i had a lot of facts.

you had a lot of fables. >> what can i tell you? i loved it. i thought it was riveting. i thought everyone put it on. put it on right now. >> thanks, jim. see you in a couple moments. coming up some final thoughts from our guest host democratic strategist bob trump. >> when you work hard and have done well and walk through that doorway of opportunity, you do not slam it shut behind you. >> we'll get reaction from the house, the senate, and political strategists plus an early read on friday's jobs number. the adp employment report hits at 8:15 a.m. eastern. we'll bring you the data and the market reaction.

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serious investors are choosing fidelity. get 200 free trades today and explore your next investing idea. stock of the day is fedex a company slashing its profit outlook for the current quarter blaming a weak global economy. rival u.p.s. lowered its 2012 earnings forecast back in july. we don't have much time. i've enjoyed being with you today, bob, our guest host, democratic strategist, former campaign manager. we'll do that exchange after the election. >> right. >> see what happens. >> obama is going